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Banks want special recovery tribunals for high value debts

July 20, 2022

Banks want special recovery tribunals for high value debts
Banks have petitioned the Finance Ministry to set up special debt recovery tribunals (DRTs) and debt recovery appellate tribunals (DRATs) for speedy adjudication and recovery in high-value cases (₹100 crore and above).

The request comes in the backdrop of a high pendency of cases in existing tribunals 39 DRTs and five DRATs countrywide.

As at February-end 2022, there were 1,61,034 pending cases at the DRTs, with DRT 2 Chandigarh having the most (10,578 cases), followed by DRT 3 Chandigarh (8,885) and DRT 3 Kolkata (7,171), as per Minister of State for Finance Bhagwat Karad’s reply to a question in the Lok Sabha.

There is high pendency even after the Central Government had in 2018 doubled the pecuniary limit to ₹20 lakh for debt recovery applications at DRTs.

“The existing tribunal benches cannot be entirely faulted for the pendency as they are almost full with cases. A ₹20-lakh case and a ₹100-crore case for adjudication and recovery of debts are treated the same way.

“High-value cases need to be taken up on priority basis. Hence, the Government needs to increase the number of special benches,” said a senior public sector bank official.

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